Nov. 20 (Bloomberg) -- Boeing Co. and Airbus SAS leave the
Dubai Air Show with diverging prospects for their order
momentum, with the Boeing 777X set to be a global hit while the
Airbus A380 risks becoming a niche jet for Mideast carriers.

The aircraft manufacturers announced about $179 billion in
combined transactions, more than the gross domestic product of
New Zealand, with Boeing and Airbus each scoring record
commitments for the re-winged 777 and the A380 jumbo. Buyers
were largely limited to the Middle East, underscoring the
region’s emergence as the new epicenter of aviation.

Boeing surfaced as the winner from the Dubai expo, where it
surpassed 1,000 orders for the 787 Dreamliner and made the 777X
launch the most successful ever for a large aircraft. While
Emirates’ order for 50 additional A380s breathed fresh life into
a program plagued by scant demand, Airbus has yet to prove the
jet’s broader appeal as many airlines hesitate to add the super-jumbo to their fleets.

“There’s an awful lot to play for,” said John Strickland,
director at JLS Aviation Ltd., an advisory firm in London.
“These headline orders from blue-chip companies do influence
others in their decisions, so both manufacturers will be
fighting for every order they can get.”

Rapid-Fire Announcements

Etihad Airways PJSC from Abu Dhabi was the most prolific
buyer after Emirates, adding 25 777Xs and 30 Dreamliners, and
turning itself into the largest customer of Boeing’s composite-material jet in the process. Absent from the deals were
European, Asian and North American buyers as well as leasing
companies, which typically form a large portion of sales.

This year’s event eclipsed the last expo two years ago,
when Chicago-based Boeing narrowly pulled ahead of Airbus, with
$19 billion of deals versus $17.6 billion. Boeing held a wider
lead at this year’s event over its Toulouse, France-based rival,
scoring $129 billion in orders, compared with $50 billion for
Airbus.

Emirates has managed to make its A380 a success in part
because it built a growth strategy around the aircraft rather
than making it an exotic component of its fleet, as is the case
with most other operators. The state-owned carrier also flies
the planes to destinations considered by competitors as second-tier airports, such as Manchester in northern England, helping
Emirates funnel more traffic through its Dubai hub.

Betting Big

“They made a bet and they won the bet,” said Airbus Chief
Executive Officer Fabrice Bregier. “They gained market share
and they don’t understand why some of the airlines are so shy.
This is to their advantage.”

Boeing’s new 777X aims to replicate the success of the
existing model, which forms the backbone of many long-haul
fleets, including Emirates. The world’s largest airline by
international traffic is buying 150 of the new planes to replace
its current lineup, in the biggest purchase yet by value, at $76
billion. Boeing announced all its major orders in rapid
succession on the first day of the Dubai show.

The success of the 777X, which comes in a large 405-seat
and a smaller version, comes at a cost to Boeing. The plane eats
into already weak demand for the 747-8 jumbo, for which Boeing
has cut output twice this year. McNerney said there is “no
question” that the 777 puts pressure on bigger jets.

Coming Second

Airbus sought to play down the success of the 777X, saying
its own A350-1000 is an all-new design rather than an upgrade
from an existing frame and will fly years before the 777X. The
model garnered 10 orders from Etihad at the show, and has also
been bought by Emirates and Qatar Airways Ltd.

Besides the disproportionately large orders, the Middle
East is exceptional in that wide-body sales dominate, an anomaly
in an industry where smaller single-aisle models are the
workhorses of most carriers. Boeing, which lagged Airbus in
market share for short-haul planes in the region, made a dent in
its rival’s lead with a deal for as many as 111 jets from
FlyDubai. Etihad bought 36 Airbus A320-family models.

Airbus still has one order for the A380 to confirm, from
leasing company Doric, which said in June that it would buy 20.
Before the Emirates repeat purchase, Airbus was at risk of
failing its annual order goal for a third straight year. With
Emirates proving to competitors that it can make the aircraft
work, Airbus said other carriers are sure to follow.

“A lot of airlines get into trouble because they are risk
averse,” said John Leahy, Airbus’s sales chief. “Emirates is a
profitable airline that’s eating their lunch. They’re the best
marketing tool we have.”